The IAB would help capital market regulator SEBI better understand the global market trends and emerging developments and challenges. The decision to set up an IAB was taken by the SEBI board in its meeting on 28th July, pursuant to which SEBI began the process of setting up this board
New Delhi: At a time when global financial developments hold the key to stock market movements in India, the Securities and Exchange Board of India (SEBI) has set up an international advisory board (IAB), which would hold its first meeting next month, reports PTI.
The IAB would comprise of seven members, including SEBI chairman UK Sinha.
The six outside members include Viral Acharya from New York University’s Stern School of Business, Singapore Exchange’s independent director Jane Diplock, Harvard Business School’s Mark Maletz, Maureen O’Hara from Cornell University’s Johnson Graduate School of Management, Arvind Panagariya from Columbia University’s School of International & Public Affairs and China Banking Regulatory Commission’s Andrew Sheng.
The first meeting of the IAB is scheduled on 27 January 012 in New Delhi, as per a memorandum submitted to SEBI board in its last meeting on 24th November.
The IAB would help capital market regulator SEBI better understand the global market trends and emerging developments and challenges.
The decision to set up an IAB was taken by the SEBI board in its meeting on 28th July, pursuant to which SEBI began the process of setting up this board.
For the probable names, SEBI had sought suggestions from its whole-time members, as also from the two former Reserve Bank of India (RBI) governors YV Reddy and Bimal Jalan, besides Raghuram Rajan, professor of finance, University of Chicago, and Kaushik Basu, Chief Economic Adviser, ministry of finance.
The IAB would discuss various macro-level and strategic issues and help SEBI in its mandate to protect the interests of investors, promote the market growth and regulate it.
All the recommendations of the IAB, along with the actions taken by SEBI, thereon, will be reported to the SEBI board.
It was previously decided that the members of the IAB will be nominated by the SEBI chairman, from amongst the eminent persons in law, finance, economics and other related areas.
The IAB members would have a three-year term, and would be paid “an honorarium of $2,500 for each meeting.” SEBI would also arrange for air travel in business class, five-star accommodation and other incidental matters for the members.
The IAB would meet twice in a year in India, and a third meeting, if required, would be organized by SEBI through video-conferencing.
The SEBI chairman would preside the IAB meetings, where all the whole-time members of SEBI would be permanent invitees.
SEBI chairman can bring in the senior functionaries from related organizations or other experts as special invitees.
At its board meeting in July, SEBI had told its board that the events related to the recent global financial crisis have highlighted the need for continuous assessment of various developments and an immediate regulatory response.
The RBI has decided to withdraw the facility of re-booking forex contracts by companies and FIIs and reduced across-the- board exposure limits of banks which are authorised to deal in the foreign currency
Mumbai: The Reserve Bank of India (RBI) on Thursday swung into action to check slide in rupee value against dollar and speculations by imposing restrictions with immediate effect on forward trading in the local currency by foreign institutional investors (FIIs) and traders and capped banks exposure to the forex market, reports PTI.
The RBI has decided to withdraw the facility of re-booking forex contracts by companies and FIIs and reduced across-the- board exposure limits of banks which are authorised to deal in the foreign currency.
The central bank said these steps have been taken in view of the “developments in the foreign exchange market”. The rupee on Thursday slipped to the sub-54 level for the first time in its history and touched a low of 54.30 against the dollar. In the last nearly four and half months, the rupee has declined by about 20% against the dollar.
The forward contracts booked by resident, irrespective of the type and tenor of the underlying exposure, “once cancelled cannot be re-booked”, RBI said in a notification.
It has also reduced the limit for hedging of foreign currency risks for importers/exporters from 75% to 25% of the average actual import\export turnover in the past three years.
It further said all the forward contracts booked by exporters and importers would be on “fully deliverable basis.
In case of cancellations, exchange gain, if any, should be passed on to the customer”.
Besides, authorised dealers have been asked by the RBI to ensure that all transactions on behalf of their clients would be on actual remittances and delivery basis and could not be cancelled and settled in cash.
FIIs have been barred from re-booking of cancelled forward contracts. However, they can roll over such contracts on or before maturity.
The central bank also said the board of directors of authorised dealer banks would reduce overnight exposure limit for treasury operations.
“Net Overnight Open Position Limit (NOOPL) of authorised dealers would be reduced across the board. Revised limits of individual banks are being advised to the authorised dealers separately,” it said.
According to the circular, authorised dealer banks would not be allowed to exceed the NOOPL limit during the intraday trade.
Describing the RBI’s decision as a “very proactive step”, NS Venkatesh, treasury head of IDBI Bank, said, “It will cool the forex market and help in curbing speculation and reducing volatility. Normal demand (of dollar) will only be met.”
On the outlook of rupee, he said, “I expect the rupee to open tomorrow at Rs53 level from the close of Rs53.64 and hover around Rs52.50- Rs53 per dollar.”
A person who always tells the truth will always be honest but a person who tells lies or is deceitful in important matters will always be dishonest and will be fertile ground for giving and taking bribes
What is truth, asked jesting Pilate and would not stay for an answer.—Sir Francis Bacon (circa Shakespeare) “Essay on Truth”
“White Man speak with forked tongue”. A classic sentence, one I always loved, in the fiction genre called “Westerns” which documented the Americans’ savage conquest of their Wild West. The “forked tongue” is a metaphor for the white man’s perennial habit of saying one thing to the Red Indians and meaning exactly the opposite. The credulous Red Indians believed what the white man said and were destroyed by the while man’s deceit, dishonesty and treachery.
Come to India, there are lakhs of people who “speak with forked tongue”—mostly the politicians, the bureaucrats, the petty babus in the taluka offices, businessmen and their “corporate communications” people, traders, etc. I will give two examples of “forked tongues” and go on to show that truth and honesty are indivisible and the obverse that lying and deceit are inseparable from dishonesty and crimes like graft, bribery, under-the-table payments, etc.
I do not know the technical aspects of the philosophical logic that proves these statements. But these are observable facts which the philosophers will confirm in their own way.
In sum, a person who always (or 99% of the time, for perfection is impossible) tells the truth will always be honest. He will be incorruptible and blow the whistle when he comes across bribery or graft. A person who tells lies or is deceitful in important matters will always be dishonest and will be fertile ground for giving and taking bribes.
Now, the examples. Many months ago, Salman Khurshid told the world with utmost conviction that Loop Telecom had no connection with the Essar group of the Ruias, though the whole world knew otherwise. Mr Khurshid was proved wrong the Central Bureau of Investigation (CBI) which has filed a case that establishes that Loop Telecom is a creation of the Ruias. (Please see 2gscam.co.in, a website that has been around since the news of the scam first broke and gives us the “A to Z’ of the scam).
Why did Salman Khurshid say something which he knew was patently a lie? Who knows? But whatever the reason, his statement raises suspicions.
Now, we come to Kapil Sibal. A second lead report in the Times of India of about three weeks ago reads thus:
“Mumbai: A telecom company can be penalized anything between nil (sic) and Rs50 crore for violating rules. But bureaucrats are so worried of being accused of corruption that they are levying the maximum amount, almost as a rule. Nor is there any chance of the fine being lowered by the minister, who is equally reluctant to invite charges of graft.”
“The pervasive fear of being persecuted for decisions, even those intended in the right spirit, is preventing many top officials and Ministers from taking much-needed steps, said Mr Sibal, Union minister for communications and human resource development. He was speaking at the discussion on the “Agenda for Reform” at the Economic Times Awards for Corporate Excellence.”
Not only is Mr Sibal deceitful and intellectually dishonest, he is excruciatingly and outrageously funny, like something out of “Monty Python”, the great satire on British TV. And it is a short step, as we have shown, from dishonesty to something far more damaging to the country and the people.
I am not saying that Mr Khurshid and Mr Sibal are crooks. I am saying that lies and dishonesty are the basis for all the scams—2G (second generation), illegal iron ore mining, the Securities and Exchange Board of India’s (SEBI) system of settlements to let off proven offenders, even criminals, with a financial rap on the knuckles, etc.
To be fair to Mr Khurshid and Mr Sibal, one could say that, as lawyers, they are so habituated to defending the indefensible that they are unable to keep that compulsion out of public life.
So, here is a tip for the Lokpal-to-be, the Lokayuktas and the crime busters like the CBI: if you find that a guy is lying, be sure that he is basically dishonest and his psyche definitely tends towards crime.